The Real Estate (Regulation & Development) Act, 2016, Makes It Mandatory To Have A Single Bank Account For The Project Under One Registration Number. This Is Aimed At Proper Completion Of The Registered Housing Projects Without Any Diversion Of Funds.
Taking Cognizance Of These Irregularities, The Regulator Has So Far Issued Show-Cause Notices To 45 Such Projects And Is In The Process Of Sending The Notices To Remaining Projects.
In Order To Avoid Occurrence Of Such Irregularities In The Future, The Regulator Has Made Changes To Its Systems. The Updated System Will Block Any Attempt To Link The Designated Account Of One Project With The Bank Account Of Another Project.
Apart From This, The New System Will Also Not Allow The Developer To Change The Mutual Account. The MahaRera Has Issued A New Order Making Prior Approvals For This Change Mandatory.
As A Regulator MahaRera, Has Initiated These Measures To Bring In Financial Discipline And Transparency In The Real Estate Sector To Ensure Homebuyers’ Investment And Interests Are Protected, And, Also Help Improve The Credibility Of The Sector.
As Per The Real Estate Act, The Developer Is Required To Maintain Only One Bank Account With One Rera Registration Number. The Funds Received in The Respective Project Needs to Be Maintained in This Account and Used for The Work of That Project Only. It Is Not Allowed To Be Used For Any Other Project Or Purpose As Such A Diversion May Have An Adverse Effect On The Project.
The Developer Is Also Required To Maintain 70% Of The Money Received From The Registration Of That Project In This Account. The Developer Cannot Withdraw Money From This Account In An Arbitrary Manner.
While Working On The Project, Withdrawal From This Account At Each Stage Is Not Allowed Without Certification With Regards To Construction Update And Required Funds.
The Regulator Has Highlighted This Irregularity By Studying The Information Submitted By The Developers Themselves To MahaRera. Through The Show-Cause Notices, It Has Directed Such Developers to Submit All the Details of the Total Number of Flats in Each Project, The Bookings, Funds Received, Withdrawals from The Bank Along with The Evidence. The Regulator Regulator Will Take Appropriate Action After Examining This Information.
Last Week, MahaRera Red-Flagged 313 Projects For Discrepancies In Their Expenditures And Actual Project Completion Status And Started A More Thorough Inspection. The Regulator Has Appointed a Financial Audit Firm to Scrutinize Projects. It Has Already Issued Show-Cause Notices To All These 313 Projects And They Are Currently Under Scrutiny.

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MUMBAI: This City Is Not For Developers, And The Slum Rehabilitation Act (SRA) Is Intended To Serve The Purpose Of Public Welfare And Not The Developers, The Bombay High Court Said, Directing Two Developers To Pay Transit Arrears Of Rs. 11 Crore To A Suburban SRA Project.
A Division Bench Of Justices Gautam Patel And Neela Gokhale Made The Observation On Monday While Hearing A Petition Filed By Shree Sai Pawan SRA CHS Ltd Claiming That The Two Developers Appointed For Redevelopment Of Their Society Had Not Paid Them Transit Rent Since 2019.
Afcons Developers Ltd And Ameya Housing Private Ltd Were Appointed As Co-Developers Of The Slum Rehabilitation Project At Jogeshwari In Suburban Mumbai.

More Than 300 People Eligible to Get Flats in The Project Have Not Been Getting Any Transit Rent Since 2019. Of The 300, 17 Were Put Up in Transit Accommodations and Were Hence Not Receiving Transit Rent, But These Houses Were Also in A Dilapidated Condition.

The Remaining 230 Persons Have Not Received Any Transit Rent Since 2019 And Have Been Left to Fend for Themselves. The Two Co-Developers Are Locked in A Never- Ending Arbitration and There Is No Work Being Done at The Site, The Court Said. “This City Is Not for Developers. The Slum Rehabilitation Act Is Not for Developers. The Act Is Intended to Serve a Public Welfare Purpose. Developers Are A Means To That End,” It Observed.
The Court Further Said That The Developers Are Entitled To A Free Sale Component Provided By The Incentive Floor Space Index (FSI), But This Is A Consideration For Fulfilling Their Obligations Under The Contract.
“Those Obligations Include Not Only Rebuilding Or Building Of The Rehabilitation Structures And Tenements Both Commercial And Residential, But Also The Payment Of Transit Rent Or Providing Habitable Transit Accommodation,” It Said.
A Developer, Who Does Not Pay Transit Rent, Does Not Provide Habitable Transit Accommodation Or Otherwise Is In Default Of His Obligations, All Of Which Have To Be Performed On A Schedule And Within A Time Frame, Is Not Entitled To Any Of The Benefits Of The Slum Rehabilitation Project, I.E., The Free Sale Component, The Court Said.
If There Is A Demonstrated Default By The Developers, Then The Privileges Or Entitlements Are Liable To Be Taken Away, It Said.
“A Party In Default Cannot Be Allowed To Take Advantage Of Its Own Wrong And Failure. That Would Be Profiteering And That Too At Public Expense Because Many Of These Slum Projects Are On Public Lands – Such As This One – And The Developer Is Not Being Made To Pay The Cost Of Land,” The Bench Said.
The Court Also Warned Of Terminating The Developers’ Contract And Appointing A New One Noting That “The Developer Can Always Be Changed, But The Beneficiaries Of A SRA Project Cannot”.
If The Two Co-Developers Are At All Serious About The Project And Want Their Rights To Continue, They Must Demonstrate Their Bona Fides And Pay Around Rs. 11 Crore Transit Rent Arrears To The Petitioner Society By March 3, It Said.
“They (Developers) Must Prove Their Sincerity. To Seek Equity, They Must Do Equity,” The Court Said While Posting The Matter For Further Hearing On March 3.

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MUMBAI: MahaRera Will Initiate SUO Moto Action Against Projects That Are Advertised Without Registering with It. It Has Come to Their Notice That Advertisements of Projects Are Being Published in Newspapers Without Mentioning the MahaRera Registration Number. Home Buyers Have Been Advised Against Investing In Projects Without MahaRera Registration Numbers.
As Per The Officials, Promoters Of Projects Have Been Issuing Advertisements Of The Projects In Newspapers Without Mentioning The MahaRera Registration Number And They Believe That They Have Not Mentioned The Number, As The Projects Are Not Registered With It.

MahaRera Has Taken Serious Notice of These Irregularities and Action Is Being Taken Against Them by Sending Notices to These Projects.

“The Real Estate (Regulation and Development) Act Mandates That Developers Cannot Advertise a Project, Register, Sell Units in That Project Without Registering with MahaRera.”

However, Certain Developers Have Advertised Without The Registration Number And In Some Cases Mentioned That It’s Registered Without The Number.
The Act Mandates That Any Project Of Over 500 Square Metres Or Eight Flats Is Required To Be Registered With MahaRera.

Subscribe to MakaanBhai.com for information, regulations, and appropriate pricing regarding such properties. We at MakaanBhai.com are the number one property advisors with zero brokerage in Mumbai, dedicated to providing you with comprehensive guidance through the entire process. We take pride in having clear information about the real estate market in various areas like Mumbai, Navi Mumbai, and the surrounding regions such as Karjat, Neral, Vangani, Badlapur, among others, and strive to offer our customers the best available options. Contact MakaanBhai.com now and secure your home investment.

Information Source : Internet